BUS-D 270: Global Business Environments - Indiana University Bloomington Kelley School of Business - Midterm Review (Chapters 1-3)

Smaller countries tend to be _____________ globalized than larger ones.

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Speaking of doing international business (versus domestic business) the complexity increases with all of the following EXCEPT

A. Level of internal control desired

B. Number of political parties in a country

C. Differences among countries of expansion

D. Number of countries of expansion

B. Number of political parties in a country

Critics charge that globalization does which of the following to products, companies, work methods, social structures, and even language?

A. Individualizes

B. Homogenizes

C. Reduces

D. Socializes

E. Increases

B. Homogenizes

The main difference between Foreign Direct Investment and Portfolio Investment is that...

foreign direct investment involves some form of managerial control and physical presence in a foreign country

You wish to open a fast food restaurant and choose to open a branch of an already established company in order to use its trademark. This demonstrates which of the following?

A. International business

B. Franchising

C. Royalties

D. Foreign direct investment

E. Globalization

B. Franchising

Based on our in-class discussion and visual examples, which of the following was stressed as the main contributor for the sense that the globe was shrinking between 1500 to 1960s?

A. transportation advances

B. the rise of the internet

C. telecommunication

D. the domestication of horses and the rise of the internal combustion engine

E. the early introduction of microprocessors

A. transportation advances

A useful analogy to communicate the nature of international business was...

Playing chess(international) versus checkers(domestic)

A company that starts out with a global focus because of its founders' international experience is called...

Bornglobal

Which of the following is NOT a viable criticism of globalization?

A. A company moves jobs overseas to save on

expenses.

B. Communication between two nations grows, as do

resources.

C. Workers are worried that they may lose their jobs.

D. An international business affects the environment.

E. A nation loses its sovereignty due to international

business regulations.

B. Communication between two nations grows, as do resources.

You live in Jamaica and rarely see your country compete in many winter Olympic sports. This is an example of international business being affected by which of the following?

A. Geography

B. Law

C. Politics

D. Psychology

E. Anthropology

A. Geography

Which of the following is NOT a criticism of globalization?

A. Environmental stress

B. Communication between nations

C. Income inequality

D. Threats to national sovereignty

E. Personal stress

B. Communication between nations

Each of the chapters in D270 can be used to research the parts of...

A country analysis report

The Floating Subsidiary concept helps explain all the following situations EXCEPT

A. The sense that the host country government tends

to favor its local firms

B. The demands by corporate headquarters for a

certain level of profitability

C. The feeling that one part of the firm's operation

abroad is more important than one at home

D. The pressures exerted by strong unions in the

home country

E. The sense that there is no international organization

that can settle disputes between countries

C. The feeling that one part of the firm's operation

abroad is more important than one at home

Which of the following make up the three major objectives that underlie the reasons for engaging in international business?

A. Maintaining sales, acquiring resources, and

engaging in high risks

B. Expanding sales, acquiring resources, and reducing

risk

C. Expanding sales, maintaining resources, and

maintaining supplies

D. Maintaining sales, maintaining resources, and

maintaining supplies

E. Reducing sales, reducing resources, and engaging

in high risks

B. Expanding sales, acquiring resources, and reducing risk

According to lecture discussion, MNCs are oftentimes criticized for going international. A relentless force pushing them to go international was emphasized as...

Growing consumer demand for foreign products

Signed contracts that permit one company to allow another to use its assets are known as what?

Licensing agreements

All EXCEPT which of the following social science factors should be examined by a company before it implements international strategies?

A. Economy

B. Geopolitical

C. Weather

D. Politics

E. Law

C. Weather

Speaking of why firms go international, countering a competitor's moves is a good example of...

To minimize risks

Critics claim that all EXCEPT which of the following are problematic results of globalization?

A. Consumption of nonrenewable natural resources

B. Business growth is happening too quickly

C. Increases in environmental damage

D. Personal stress

E. Threats to national sovereignty

B. Business growth is happening too quickly

Tangible products that are sent out of a country are known as what?

Merchandise Exports

All are reasons for reshoring EXCEPT:

A. Advantages of locating production near technical development

B. Good quality abroad

C. Consumer pressure

D. Poor quality abroad

E. Concerns about competitive security

B. Good quality abroad

A nation's freedom to "act locally" and without externally imposed restrictions is known as what?

Sovereignty

From the lecture, a good example of "Why do Firms Go International?: To Minimize Business Cycle Differences Risk" is...

The popularity of Buick in China

All of the following were listed in the lecture on why globalization matters EXCEPT

A. To respond to the competition

B. To identify countries with relaxed rules

C. More access to raw materials

D. More career opportunities

E. To better understand societal and governmental

views

B. To identify countries with relaxed rules

You are a professional athlete from the United States and are traveling to Rome for a competition. Your travel expenses in Rome can be interpreted as which of the following for Rome?

A. Service imports

B. Merchandise exports

C. Merchandise imports

D. Service exports

E. Agglomeration

D. Service exports

The creation of legal agreements between countries that determine how earnings will be taxed by all jurisdictions is known as which of the following?

A. Social law

B. National law

C. Domestic law

D. International law

E. Globalization

D. International law

___________ are construction projects performed under contract and transferred to owners when they're operational.

Turnkey operations

All of the following are reasons why most governments have reduced trade restrictions EXCEPT?

A. Competition spurs domestic producers to become

more efficient.

B. They hope to induce other countries to lower their

barriers in turn.

C. Their citizens want a greater variety of goods.

D. Securing more income for the government.

E. Their citizens want goods and services at lower

prices.

D. Securing more income for the government.

The United States has been ranked first on the technological scale and almost last on the economic scale, according to the A.T. Kearney/Foreign Policy Globalization Index. This is an example of which of the following?

A. How globalization affects only one facet of

business

B. How globalization can differ by dimension

C. How globalization is a result of its country

D. How globalization stays the same in each

dimension

E. How globalization is not important in business

B. How globalization can differ by dimension

Globalization allows us to do all EXCEPT which of the following?

A. Interact with only our nation.

B. Get better quality.

C. Interact with other nations.

D. Get more variety.

E. Get lower prices.

A. Interact with only our nation.

Generally, people do not find out about economic status to a satisfactory extent unless they are doing better and doing which of the following?

A. Keeping to themselves

B. Meeting their own financial expectations

C. Maintaining their personal best

D. Not comparing themselves to others

E. Keeping up with others

E. Keeping up with others

A United States company owns a Liverpool football club in the United Kingdom. British law determines how the club is taxed. This is an example of which of the following factors that influence international business?

A. Legal

B. Geographical

C. Competitive

D. Political

E. Behavioral

A. Legal

You wish to open a fast food restaurant and choose to open a branch of an already established company in order to use its trademark. This demonstrates which of the following?

A. International business

B. Franchising

C. Royalties

D. Foreign direct investment

E. Globalization

B. Franchising

Goods that are brought into a country are known as which of the following?

A. Agglomeration

B. Merchandise exports

C. Globalization

D. Products

E. Merchandise imports

E. Merchandise imports

You own an American football team. After seeing an American baseball team scout foreign-born baseball players, you decided to start looking for foreign-born football players as well. This is an example of which of the following?

A. Greater global competition

B. Changing political situations

C. Development of services

D. Growing customer pressures

E. Increase technology

A. Greater global competition

Home country regulations on taxation, employment, and foreign-exchange transactions are known as which of the following?

A. Globalization

B. Domestic law

C. International law

D. Social law

E. Agglomeration

B. Domestic law

International business transactions refer to all EXCEPT which of the following?

A. Transportation

B. Profits

C. Personal conversations

D. Investments

E. Sales

C. Personal conversations

The structure of the D270 topics is related to

A. The Role of Emerging Economies

B. The Environmental Approach

C. The Power of Industrialized Countries

D. The type of Political Systems in the world

B. The Environmental Approach

Countries with ________income populations tend to be more globalized than those with _________income populations?

A. lower, higher

B. negative, positive

C. higher, lower

D. No impact

E. higher, higher

C. higher, lower aka Higher Income = Higher Globalization

A mode of business in which one party allows another to use its trademark as an essential asset of the franchisee's business is known as which of the following?

A. Royalties

B. Agglomeration

C. Licensing agreement

D. Globalization

E. Franchising

E. Franchising

One important indicator of Globalization highlighted in the lecture was that

A. 25% of all Production is sold outside the country of

origin

B. 50% of all Production is sold outside the country of

origin

C. 5% of all Production is sold outside the country of

origin

D. 75% of all Production is sold outside the country of

origin

A. 25% of all Production is sold outside the country of origin

Globalization

Widening and deepening of interdependent relationships among people of different nations